Trust Fund Recovery Penalty Services
Maine TaxSlayer – Trusted Help with IRS Trust Fund Recovery Penalty Cases in Maine
In-Depth IRS Knowledge
We understand how the IRS investigates and enforces the trust fund recovery penalty, helping you avoid missteps and respond effectively at every stage.
Personal Liability Defense
Our team will assess whether you truly meet the IRS criteria for responsibility and willfulness, helping to build a strong case to challenge or limit the IRS trust fund recovery penalty.
Strategic Negotiation Support
From appeals to installment agreements, we help negotiate with the IRS to find practical solutions that protect your personal finances and business interests.
Customized Financial Reporting
We specialize in complex tax issues like the trust fund recovery penalty, offering tailored advice and support that’s based on real experience.
What Is the Trust Fund Recovery Penalty?
The trust fund recovery penalty (TFRP) is one of the more serious actions the IRS can take against individuals associated with a business. It applies when a business fails to pay federal employment taxes withheld from employee paychecks — commonly referred to as "trust fund taxes." These taxes include federal income tax, Social Security, and Medicare contributions that are supposed to be held in trust for the U.S. government.
When these funds are not submitted, the IRS holds certain individuals personally liable. That’s when the IRS trust fund recovery penalty comes into play.
Who Can Be Held Liable?
The IRS trust fund recovery penalty isn't limited to just business owners. Anyone who is responsible for collecting or paying these taxes and willfully fails to do so may be targeted. This can include:
- Business owners
- Corporate officers
- Bookkeepers
- Payroll staff
- Board members
- Check signers
How the IRS Determines Liability
Understanding how the IRS builds its case is essential for defending yourself. At Maine TaxSlayer, we work to clarify your role, present the facts in your favor, and push back where liability is misapplied. When it comes to the trust fund recovery penalty, early and informed action makes all the difference.
- Responsibility – The IRS defines a "responsible person" as someone who had the authority to collect, account for, and pay trust fund taxes. This isn’t limited to owners or corporate officers. Even if you didn’t directly handle payroll, if you had influence over how funds were allocated, you could be considered responsible.
- Willfulness – Willfulness doesn’t mean you intended to break the law. Instead, it means you were aware (or should have been aware) of the unpaid taxes and chose to pay other obligations—such as rent, vendors, or employee wages—before paying the IRS.
Once liability is determined, the IRS can personally assess the IRS trust fund recovery penalty, which may total the full unpaid balance of the trust fund taxes. This can be financially devastating if not handled correctly.
How Maine TaxSlayer Can Help
At Maine TaxSlayer, we’ve guided many businesses and individuals through the trust fund recovery penalty process. We understand the pressure of receiving an IRS letter and the fear that comes with the possibility of personal liability.
Here’s how we support you:
- Detailed Case Review: We start by thoroughly reviewing your IRS documentation and business history to determine your level of exposure.
- Communication with the IRS: We act as your authorized representative and manage direct communication with the IRS so you don’t have to.
- Strategic Defense Planning: We help demonstrate lack of responsibility or willfulness if applicable, potentially reducing or avoiding the IRS trust fund recovery penalty.
- Resolution & Settlement: If liability is unavoidable, we work to negotiate reasonable payment arrangements or penalty abatement options.
Our firm’s approach is based on practical, compliant solutions. With our local experience and deep understanding of IRS procedures, you can move forward with less stress and more confidence.
Why Timely Action Matters
If you’ve received a 4180 Interview notice or a Letter 1153 from the IRS, time is critical. Delays can limit your legal options or lead to full personal assessment of the trust fund recovery penalty. Acting early gives you a better chance to resolve the issue before it worsens.
Why Choose Maine TaxSlayer?
We’re not just tax professionals — we’re problem solvers with a local focus. Whether you’re running a business or managing operations, we bring personal attention and deep tax knowledge to each case. Our goal is to protect your personal and business finances from unnecessary IRS enforcement actions like the IRS trust fund recovery penalty.
Maine TaxSlayer is a tax resolution service that provides expert tax advice to individuals & small businesses across Augusta, Portland, Bangor, Lewiston, Waterville, Farmington, Camden, York, Ellsworth, Boothbay, and the surrounding areas.